A high degree of competition in the market makesthe need to carry out activities such as inventory planning. Determination of their optimum quantity allows to reduce costs, while leaving for the organization the possibility of making adjustments to production. Commodity stock is a whole set of products that is intended for sale and is in the sphere of circulation. It can be in the process of transportation, in the warehouse, as well as in the storage. Availability of the required volume of this category is an indispensable condition for ensuring the continuity of the entire production process. Commodity is created for specific purposes. The main ones are to ensure the continuity of production in order to fully satisfy the existing needs of the population, improve the quality of service and increase the competitive advantages of the enterprise as a whole.
Functions that perform stock
The first of these is the provision of uninterruptedcirculation and production, as a result of which there is a constant formation and consumption. The second important function is the satisfaction of the demand of the solvent population, since it is the commodity stock that acts in the form of a proposal. And the last, but not less important. Commodity stock is able to characterize the existing relationships between volumes and structures of such categories as supply and demand.
Formation factors
First, reserves are formed at any stagegoods movement, as there are seasonal fluctuations in the production process and in consumption itself. The second factor is the period of time necessary for transportation. Important is also the need for certain transformations to create a merchandise from the existing production. For this, sorting, packaging and other processes are used. The fourth factor is the distance between the direct supplier of the product and the trade organization. Among other things, we must not forget about the need to create reserves and insurance reserves, which would ensure the smooth functioning of this complex system. There are also many other factors that have a direct impact on the formation of stocks.
Types of commodity stocks
Here you can consider several classification characteristics.
By location
It is accepted to distinguish the stock of goods in transit, at the enterprise or in the trade organization.
By appointment
This feature divides the object under consideration intostocks of early delivery (typical for remote areas, ensure the continuity of production); current storage (the main share belongs to them, they are needed to meet the daily needs of the population); seasonal accumulation (furs, vegetables, all kinds of fruits).
According to the indicators
Commodity stock is divided into absolute and relative.
By size
This feature allows you to distinguish the following types: average, maximum and minimum reserves.
Summarize
The stock must be proportional to the volumeturnover of the organization. This requires a competent management system. It should include rationing, operational accounting and appropriate control and regulation.
